Elon Musk has allegedly imposed a requirement on financial institutions, legal teams, accounting experts, and consultants seeking involvement in SpaceX's upcoming initial public offering. Participation hinges on obtaining a subscription to Grok, the AI chatbot developed by Musk's company xAI.
According to a New York Times investigation, several major banks have accepted this stipulation, committing to expenditures in the tens of millions for Grok services. These organizations are now incorporating the AI tool into their technology infrastructures.
Insiders cited by the Times indicate that the Grok subscription forms a mandatory element of the arrangement for IPO participation. Musk additionally encouraged the banks to place advertisements on the X platform, though he applied less pressure on this aspect.
The IPO process is anticipated to involve five prominent banks: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley. Legal counsel is being provided by Gibson Dunn and Davis Polk, with indications that these entities are also deploying Grok within their operations.
SpaceX submitted a confidential IPO filing earlier this week, projecting proceeds exceeding $50 billion and a company valuation surpassing $1 trillion. The banks stand to gain more than $500 million in fees from the transaction, potentially offsetting the costs associated with the Grok requirement.